R10.5 billion has been mapped-out to facilitate housing financing for qualifying government employees and members of the public.
BuzzSouthAfrica learnt that the Government Employees Pension Fund (GEPF) through its investment manager Public Investment Corporation (PIC) announced an investment commitment of R10.5 billion into SA Home Loans (SAHL).
As gathered, the investment aims to provide government employees and qualifying members of the public with end-user home finance and development finance for approved affordable housing projects.
The investment in SAHL is part of the developmental investment mandate that the PIC is carrying out on behalf of the GEPF. Specifically, the housing financing will address the social infrastructure element which has housing as one of the key components.
Speaking Dr. Claudia Manning, Member of the PIC Board said: “The PIC is intentionally implementing a developmental investment mandate, which primarily seeks to achieve two types of returns, namely: financial and social returns.
Financial return means that PIC must generate profit for clients and social return means our investments should positively affect the social conditions of the stakeholders.
Our view is that members of the GEPF should benefit during their active working years and during retirement – and this is a social return. Investing in affordable housing finance schemes such as this, provides these members with a real benefit.”
Also, Abel Sithole, the Principal Executive Officer of the GEPF, said: “We believe there are many GEPF members who often do not qualify for bank-issued housing loans and housing subsidies offered by the government.
We are therefore, excited about this investment as it will enable many government employees to own their own houses at a much more affordable rate. Most importantly, we believe home ownership can restore people’s dignity”
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Speaking for SAHL, Kevin Penwarden, SAHL’s Chief Executive Officer said:
“We are excited about this partnership. More than anything, this investment is an expression of confidence in our service offering.
We believe we have the necessary capacity and skills to deliver excellent home financing services to clients that will be coming through the GEHS platform, as we have consistently done with all our clients.”
In all, this initiative is regarded as a product of SA government National Development Plan.